PPF Interest: If you are a PPF account holder then this news is for you. Actually, let us tell you that if you also keep the correct information about the calculation of interest in the provident fund account and run your account accordingly, then you can also get more return from the deposited amount than others.
Public Provident Fund (PPF) is a popular investment scheme in India, which is preferred due to good interest, tax exemption and low risk. Currently, the interest rate on PPF is 7.1 percent, which helps people keep their savings safe. Some investors earn more interest due to the correct knowledge of PPF rules. They do not make any new or additional investment, but try to increase their investment by using the existing rules properly. Thus, PPF has become a reliable and profitable option.
If you also keep the correct information about calculation of interest in the provident fund account and manage your account accordingly, then you too can get more return from the deposited amount than others. PPF account can be opened in post office or any bank branch. A minimum of Rs. 500 and a maximum of Rs. 1,50,000 can be deposited in PPF account every year.
5th date rule-
According to PPF rules, interest is calculated on the amount deposited between the last date of the month and the 5th. The amount deposited after the 5th gets interest from the next month. That is why, if you deposit money by the 5th, you get interest for the whole month. After this, interest is not paid on the deposited amount for 25 days.
Full investment at the beginning of the year-
PPF earns compound interest on money. This feature of compounding increases the money. To get more interest on the amount deposited in the PPF account, if you invest the whole year at the beginning of the financial year, then you will get more benefit than depositing money every month.
To get more interest from public provident accounts, you should avoid frequent withdrawals from PPF account. Withdraw money only when it is very necessary. Frequent withdrawals spoil the minimum balance criteria and the person is not able to earn the desired interest amount.
You can invest up to Rs 1.5 lakh annually in your PPF account. The interest rate and tax exemption of PPF is higher than many other government schemes. Therefore, to earn more money from interest, you should deposit Rs 1.5 lakh annually in your PPF account.
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